A Conceptual Review of Factors Influencing Succession in Small- and Medium-Sized Construction Firms in Nigeria

Several construction companies continue to fail soon after the demise/exit of their founder or owner-manager. Founders/owner-managers are reluctant to give up control of their business for the next generation and thus prefer to live with uncertainty. Successfully transferring the control of firm or business to the successor is very vital for sustainable economic growth and knowledge transfer. This is a conceptual review chapter aimed at identifying factors influencing succession in construction of small- and medium-sized construction firms in Nigeria. A thorough literature exploration was conducted on the existing current available literature. Findings revealed that the major factors that influence succession in construction of small- and medium-sized construction firms in Nigeria include clear company goals/purpose, demarcating personal assets from company assets, having in-place strategy to create leaders, developing and implementing a written succession plan, good communication link between stakeholders and mentoring (employee training). Founders/owner-managers of small-sized construction firms should give priority to the identified influencing factors to ensure proper succession planning and implementation processes are put in place so as to ensure successful transfer of ownership of the business to the next generation.